Attention all Canadian savers. I just came across this special savings account offer from TD Canada Trust, which as you should know is one of Canada’s largest banks. What they’re offering is an interest rate bonus for all new clients that open up one of their “Guaranteed Investment Accounts” Contrary to the name, it is not a GIC but a mere high interest savings account. I’m a little bit late in reporting about this promotional offer, but not to worry as the offer will be valid until December 12, 2008. December is fast approaching so if this savings account interests you then you may wish to open up an account right away.

Here are the details of this offer (courtesy of the TD Canada Trust website):

Open a TD Canada Trust Guaranteed Investment Account between October 14, 2008 and December 12, 2008 and earn an interest rate bonus on every dollar you deposit until March 31, 2009. Deposit as much as you want, as often as you want, and get the bonus rate until March 31, 2009. The sooner you act, the more interest you’ll earn.

Account Balance

Premium Interest Rate (as of October 1, 2008)

Guaranteed Bonus Rate (October 14, 2008 to March 31, 2009)

Total Interest on Deposits (up to March 31, 2009)

$5,000 or more

2.25%

1.25%

3.50%

Less than $5,000

0.00%

2.25%

2.25%

Interest rates may change at any time without prior notice.

Access your money when you want it

There’s no need to “lock in” your money. You can access your savings any time, 24 hours a day, seven days a week through TD Canada Trust’s Green Machine ABMs, EasyWeb Internet banking or EasyLine telephone banking. You can also visit any TD Canada Trust branch or you can speak with a TD Canada Trust or TD Waterhouse representative about how this savings account offer.

One free debit transactioneach month; additional debits are $5 each after the first free debit

No maturity date or minimum deposit, however, no interest is currently paid on balances below $5,000

Account Options:

EasyWeb Internet banking service

24-hour EasyLine telephone service

Pre-authorized Transfer Service

Now for the fine print, except I’ll make it BIG print

Your Guaranteed Investment Account will earn, commencing on the second business day after account opening, a bonus interest rate of 1.25% per annum on balances of $5,000 or more and 2.25% per annum on balances of less than $5,000, above the regular posted rates for this type of account until March 31, 2009. Regular posted rates only shall apply thereafter. Interest is paid monthly on the total daily closing balance of each tier of the account. Bonus interest will be calculated separately from the regular interest and will be credited to the account at the end of the month. For accounts opened online, account opening documentation, if applicable, must be signed and returned to TD Canada Trust by January 16, 2009. Interest rates are subject to change without notice.

So, was the print big enough for you folks? It was? I thought so too. The 3.50% (assuming you’ll deposit $5000+) is really good – it’s one of the highest you can get here in Canada. The limited time nature of the interest rate bonus sucks though, but if you’ve got a lot of cash you want to keep in a safe savings account for a little while it makes sense. Obviously if you’ve got less than $5000 to save then this account is not for you as you will not earn any interest except the bonus interest rate which will expire anyways.

For more info I suggest you jump on over to the TD Canada Trust website at:

Hi Michelle. Thanks for letting me know about it :) but I think the offer is too short to make it worth while. There are only a few days left and the paltry interest one earns in that time span just doesn’t make it worth while.

Stay tuned to my blog as I’m gonna let everyone know about a Canadian bank that offers 3.50% on a savings account (not a limited time offer).

Thanks for posting this. I used to like TD Canada Trust, but I’m dismayed by how strict they are.

I was curious if any of you out there have been told that once you invest in a GIC, you cannot redeem it till it matures?

The reason I’m asking this, is Canada Trust purchased a GIC, without even asking me if it’s what I wanted, within my RSP account. This is the second time they’ve done this to me without contacting me.

I can’t stand being “locked in” or being told that I can’t redeem my money. Other institutions charge an early redemption fee for you to get out, so how can TD Canada Trust get away with telling me that I can’t get my money out?

I even have an email from them proving their claim. It doesn’t make any sense. Any advice or help would be greatly appreciated.

Jose I do believe they have “cashable” GICs as well. You just have to make sure you invest in them, and not in the “non-cashable” ones.

If I’m not mistaken “cashable” GICs can be cashed out (hence the name) typically after a period of 30 days without paying any penalties. This gives you extreme flexibility; say for example if you believe that interest rates will rise in the short term.

I believe TD Canada Trust offers very little incentive or good rates, their managers are young, lack exp. and are rude. I would never trust that company with my money because before the blink of an eye you might get charged a service fee.

As for the GIA account, I believe if you go below the minimum you pay a fee. You are only allowed ONE transaction and beyond that it is $5 per a transaction. SCAM! :)

I definitely agree that TD generally doesn’t offer competitive interest rates. As for their managers I never had to deal with any so I can’t voice any opinion. I do like their clerks in general. Most of them are very friendly from my experience.

Came accross this TD opportunty by chance. Went to the local TD branch as I am a depositor there and asked about it. Everyone claimed ignorance to the fact even though I showed them a copy of their promo. Finally a financial advisor with TD came out and brought the light of day to all the unknowing. They would however not convert any of my esisting accounts to the promotioal account and curtly suggested I could bring new money from outside accounts and qualify. I volunteered that this policy was not very good for their many longer term and loyal account holders. They more or less said they didn’t care, so I said I don’t care either and immediately withdrew my cash and closed my accounts with TD. I am now at Canadian Tire Financial and a local Credit Union. With all the no name Banks about and CUs c/w Internet Branche Banks, there is no need to be held captive by the BIG FIVE GOUGERS! Sincerely, RayF

lool…way to show them who’s boss :)..yeah I know what you mean, the big five banks think they can get away with anything just because they are the big five – it’s ridiculous. I wish they were more competitive with their interest rates on savings accounts and other such liquid investments.

I found that most of the time it’s the Credit Unions (especially out of Manitoba and Alberta) that offer the best interest rates. Stay tuned to this blog as I’m going to introduce two new banks/credit unions that offer way way better returns on your cash than any of the big five.